Fintech company BANKEX teamed up with researchers at University of Waterloo, InfoSec Global and the Institute for Quantum Computing to develop the protocol.
Quantum computing is one of the latest growing technologies that once fully realized would make binary cryptography-based security systems obsolete.
This could expose thousands of data systems as quantum computing would be able to hack into the binary systems with ease.
The developed protocol, known as password-authenticated key exchange or PAKE, is designed to protect data even in a world with quantum computing.
The original PAKE was designed in 1992 by Bellovin and Merritt but it was not until this year that BANKEX and the team were able to develop PAKE to be quantum-safe.
The researchers have, in fact, expressed that the structure of the new PAKE would make hacking unfeasible due to the time required to break the encryption.
The research has been published by the team so it can be spread among cryptographers across the world.